The formula for price elasticity of demand that is used in practice
A)usually drops all minus signs.
B)usually takes on different values at different points on the demand curve.
C)may calculate the percentage change in price between P? and P? as "(P? ? P?) as a percentage of (P?+ P?)/2."
D)All of the above are correct.

Question

The formula for price elasticity of demand that is used in practice
A)usually drops all minus signs.
B)usually takes on different values at different points on the demand curve.
C)may calculate the percentage change in price between P? and P? as "(P? ? P?) as a percentage of (P?+ P?)/2." 
D)All of the above are correct.

Quizplus · Accepted Answer

In practice, price elasticity of demand often drops minus signs to focus on magnitude, varies at different points on the demand curve, and uses the midpoint formula for percentage changes.

The Formula for Price Elasticity of Demand That Is Used